Dive Brief:
- Cal-Maine Foods, the largest egg producer in the U.S., recently made a significant move by acquiring ISE America, one of the top 25 egg producers, for $110 million in cash. This acquisition will grant Cal-Maine access to ISE’s facilities, including 4,000 acres of land and 4.7 million egg-laying hens, with one million being cage-free. Additionally, Cal-Maine will gain feed mills and an egg products breaking facility through this deal.
- Cal-Maine’s president and CEO, Sherman Miller, emphasized that this acquisition will allow the company to expand its presence in the Northeast, where it currently lacks a strong foothold. The transaction includes production assets in Delaware, Maryland, and New Jersey.
Dive Insight:
Miller sees the acquisition as a strategic move that will benefit Cal-Maine’s shareholders and reinforce the company’s operating model. He expressed commitment to maintaining ISE’s legacy and reputation in the market while forging new connections and customer relationships.
This purchase is part of Cal-Maine’s efforts to grow its operations, following previous acquisitions such as the purchase of an egg-grading facility in Missouri earlier this year. Despite facing challenges like the bird flu outbreak that led to the recent closure of a Texas facility, Cal-Maine continues to adapt and expand its production capabilities.
In its most recent earnings report, Cal-Maine reported a decline in sales due to lower egg prices but remains optimistic about the future. Miller noted that while the bird flu has caused fluctuations in egg prices, the impact has not been as severe as in previous years.